KOLEJ UNIVERSITI ISLAM PERLIS (KUIPs)

COURSE
BMM 4253 SMALL BUSINESS MANAGEMENT

NAME LECTURE
DR JIHAN AHMAD

NAME MATRIC NUMBER

NOR IKHMAL BIN ABD HAMID M101815013
 1. An organization should include independent members on its board of directors because
they

A. provide an objective perspective.

.
2. When buyers and sellers have agreed on a value for a product, they have established the

B. exchange price.

3. True or false: In determining the selling price of a good or service, most of the factors to
be considered by the seller are internal to the business.

B. False, most factors affecting price are not controlled by the firm.

4. A product idea is feasible if it

B. creates a competitive advantage.

5. Terry, a company buyer, has the job of choosing a particular assortment of products that
will meet the market's needs and the company's goals. Terry is responsible for the
company's product
A. mix.

6. A business manager who wants to increase the number of items the business offers need
to decide whether the new items will be compatible with the business's

C. current product mix.

7. What do many businesses identify and strive to improve in order to attract customers and
be competitive?

B. Service standards

8. What type of promotional media is a business using when it sends out a postcard telling
customers who recently purchased products that the business is adding a new line of
products?
 D. Direct mail

9. Ariel, who designs and sells a line of purses and tote bags, recently sent free totes bag to
local female news anchors. Ariel's goal is to have others see the local celebrities carrying
the tote bags to generate interest in her product. What form of word-of-mouth marketing
is Ariel using?
A. Product seeding

10. An advantage to using direct marketing to communicate product information is that the
business can
C. customize the messages.

11. Samples, premiums, and advertising specialties are examples of __________ used in
sales promotion.
12. A. communications channels

13. Why do some businesses sponsor local events?

A. To obtain publicity

13. Which of the following are public relations activities:

A. Writing press releases, distributing company newsletters, and sponsoring events

14. The cost of employing product inspectors is a(n)

A. appraisal cost.

15. Because __________ measures of risk can be too general; it is also useful to perform
__________ assessment of risk.
B. qualitative; quantitative

16. Salespersons should have good communication skills, but the sales presentation should
not include too many __________ words.
D. technical
17. Which management function lays the groundwork for all of the other management
functions?
D. Planning

18. One way that managers can promote ethical behavior on the part of everyone in the
business is by encouraging employees to
B. report unethical actions.

19. The ski shop manager set an objective to increase sales by 10% over the previous year
even though the forecast was for a mild and rainy winter. The manager's objective was
C. unrealistic.

20. One of the goals of change management is

A. to obtain buy-in from stakeholders.

21. Why would investors tend to favor a new business led by a management team over one
headed by a lone entrepreneur? Is this preference justified?

The reason why investors tend to favor a new business led by a management team over one
headed by a lone entrepreneur is because investors tend to trust that a management team has
reliable decisions, which can help reduce risks of investment. A lone entrepreneur has no
division of authority in decision-making and has single individual to communicate with to
resolve problems.

The executive team has the collective efforts and skills that an entrepreneur would not have,
and collateral. It's justified, and they gamble their money. I'm still suggesting that founders can't
thrive, but I know those who are, but this is the opinion of investors.
22. Discuss the merits of the three most basic legal forms of organization.
a) Corporation
Corporations issue publicly traded ownership interests in the capital exchanges and are
controlled by trained executives. A large part of the company's shares could be owned by these
executives, although this is not a legal necessity.
Corporations, mostly on other hand, and sole ownership and association, on the other, require
the division of ownership and management between corporations.
b) Partnership
A partnership is similar to a limited company in that the partners have become the sole
beneficiaries of the income of the corporation, but are therefore liable for all damages or debts.
For Example, an auditor who specialized in the preparation of individual tax returns and another
who has perfected corporation taxes can want to join forces to deliver a more comprehensive
collection of tax expertise than either might provide alone.
c) Sole Proprietorship
A company owned by one person. The company and its owner are considered one and the same
from a legal viewpoint. In the plus hand, this suggests that all gains are the owner's property
(after taxes are paid, of course). In the negative hand, though the owner is directly responsible
for the damages and obligations of the company.
For example, there are a variety of self-employed maintenance men, plumbers and electricians
who work in home repair jobs on their own.

23. Does the concept of limited liability apply to a sole proprietorship? Why or why not?
No the sole proprietorship does not distinguish the owner from the company, so the owners
with no limitations are the business responsibility.
24. Suppose a partnership is set up and operated without a formal partnership agreement. What
problems might arise? Explain.

Legally, through a handshake, you may even establish a general relationship arrangement - but
it's not wise. Partnerships are like any partnership, rife with potential for conflict and confusion.
Just in other marriages, if you enter into a contractual arrangement with another, before the
partnership is formally broken, you're legally yoked to them. To formalize your relationship
plan, using a written partnership agreement avoids personal grief down the line because it helps
you and your partner(s) to negotiate on how you can cope with various issues when they occur.
It would make the partnership's day-to-day operation easier and keep conflicts from developing
into full-blown crises. And don't ignore the need for a partnership arrangement because your
suggested partner is your good friend; there have been some of the ugliest partnership breakups
I've heard of or experienced between friends who believed they knew what their friend felt or
would do.

25. Evaluate the three major forms of organization in terms of management control by the owner
and sharing of the firm’s profits.
a) Sole Proprietorship
Single ownership, the simplest and most popular type of corporate ownership, is a corporation
owned and managed by someone for their own benefit. The life of the company relies solely on
the actions of the owner, because when the owner dies, the company often dies.
b) Partnership
These come in two kinds: general and small, respectively. Both owners expend their capital,
land, labor and other. on the corporation in general relationships and are both 100 percent
responsible for business debts. In other words, you are still potentially accountable for all of
your debt, even though you spend a little in a general partnership. General alliances do not
require a formal arrangement and partnerships between the two company owners may be verbal
or even implied
c) Corporations
corporation are independent entities for tax purposes that are assumed to be legitimate entities.
Among other items, this ensures that the earnings generated by a business are taxed as the
company's "personal income." Any revenue paid as dividends or gains to the shareholders is
then taxed again as the owners' personal income.